Market Trends of Spain Data Center Storage Industry
IT & Telecommunication Segment holds the major share.
- The increasing use of the cloud by large companies, driven by technologies such as big data and artificial intelligence, is the main driver of the Spanish market. The number of companies in the IT solutions and services industry has grown significantly from 16,648 in 2020 to 18,264 in 2023.
- Increased adoption of cloud-based services has fueled the expansion of retail and wholesale colocation services in Spain, leading to increased demand. This will require more racks in the data center.
- The cloud service market, which is indispensable for digitalization, is growing rapidly. With the rise of the digital economy and increased internet usage in Spain, the need for data storage and processing is increasing.
- The government has allocated EUR 84 million (USD 90.81 million )for the expansion and improvement of the Central Government Private Cloud (SARA Cloud) initiative. The use of the cloud facilitates the development of new business models, enabling companies of all sizes and industries to innovate and gain a competitive edge.
- Additionally, the data center industry heavily depends on the telecommunications sector. The 5G and broadband industries are rapidly building and deploying links across the nation. The nation has developed the Plan for Connectivity and Digital Infrastructures and the Strategy to Promote 5G Technology, which would be endowed with EUR 4,320 million (USD 4,551.1 million) through 2025 to push the adoption of 5G further. Such instances in the market are expected to create more demand for data center Storage in the coming years.
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Hybrid Storage is Expected to Hold a Significant Market Share
- The combination of on-premises and cloud storage solutions is called hybrid storage in data centers. This approach leverages the strengths of both environments, offering the flexibility to store and manage data on-site and in the cloud.
- Digital transformation is being applied by Spanish businesses and around the world. In support of a phased and strategic approach towards Digitalisation, the integration of old systems with new cloud-based technologies is facilitated by hybrid data centers.
- Specific data storage and processing requirements may exist in certain sectors of the Spanish economy. The flexibility of the hybrid architecture allows for a wide variety of solutions based on specific sector requirements like finance, healthcare, or manufacturing.
- Furthermore, factors such as internet users, online shopping, would contribute to the increasing generation of data and processing facilities. As users grow more inclined to online shopping with attractive deals offered, this would lead to a rise in digital payment services and traffic on websites, thus increasing data consumption. The number of digital payment users in the country is projected to reach 40.6 million by 2027, up from 32.35 million users in 2022. All these factors would contribute to a significant increase in consumption, boosting the demand for DC cooling infrastructre in the region.
- The key players in the market focus on collabrations and improving the data center storage solutions to meet the market demand. In June 2023, Hitachi Vantara, a prominent infrastructure, data management, and digital solutions subsidiary of Hitachi, Ltd., announced its two new global partnership agreements with Cisco. These agreements will enable Hitachi Vantara to seamlessly integrate Cisco technologies into its storage products and position it as a leading provider of data center infrastructure and hybrid cloud-managed services by bringing it into the Vantara Service Provider and Technology Integrator (STI) Partner programs.
